In a history that includes the Indian Removal Act, Fugitive Slave Act, and Smoot-Hawley Tariff, House Minority Leader Nancy Pelosi (D-CA) unequivocally declared on December 4th that the GOP tax plan is “the worst bill in the history of the United States Congress.”
The Democrats claimed that Republicans were cutting benefits to the poor in order to pay for tax cuts for the rich, insisting that if we managed to survive the net neutrality repeal, then we would all inevitably die because of the Tax Cuts and Jobs Act. Their pointless bantering ultimately failed and the tax bill was signed into law by President Trump on December 22, 2017.
These emotional appeals from the left have occurred despite the fact that it’s a fairly typical Republican tax bill. Most individuals will see their taxes cut, but the bill does not change individual tax rates very dramatically. The most important provision is the slashing of the corporate rate from 35 percent to 21 percent, and the elimination of the corporate Alternative Minimum Tax. Because of this, various companies have made some very unsurprising announcements. Since the passage of the bill:
- AT&T announced that it would invest an additional $1 billion in the United States in 2018 and give a special $1,000 bonus to over 200,000 U.S. employees.
- Boeing announced a $300 million increase in additional investment in the United States of America.
- Fifth Third Bancorp announced it would raise its company’s minimum hourly wage to $15 and give a one-time bonus of $1,000 to over 13,500 of their employees.
- Wells Fargo announced it would also raise its minimum hourly wage to $15 and aim for $400 million in philanthropic donations in the fiscal year 2018.
- Comcast announced they are going to give $1,000 bonuses to over 100,000 employees and invest $50 billion in additional funds in infrastructure.
- FedEx announced that they will increase hiring and see an additional $1.3 billion increase in profit due to the tax bill.
- American Airlines announced that it will distribute $1,000 bonuses to its employees at its mainline and regional carriers.
- Southwest Airlines announced they would give all of their employees a $1,000 bonus and donate $5 million to charity.
- Bank of America announced it would give its employees a $1,000 dollar bonus
- Region’s Financial announced it would raise its hourly minimum wage to $15.
- U.S. Bancorp announced it would give its employees $1,000 bonuses and raise its hourly minimum wage to $15.
- Zion’s Bancorp announced it would give its employees $1,000 bonuses.
- Commerce Bancshares, Inc. announced it would give its full-time employees a $1,000 cash bonus and part-time employees a $250 cash bonus.
This “worst bill in the history of congress” has actually led to the Democratic dream of a $15 minimum wage for the employees of Wells Fargo.
As it turns out, letting individuals and businesses keep more of their own money is what leads to economic growth. The promise of business-friendly policies, such as tax cuts, regulatory reform, and the repeal of healthcare mandates, is what has the American economy surging since the election of President Trump. Contrary to the various Democratic talking points, individuals and businesses always respond to profit incentives and invest as their taxes drop.
Since he has taken office, the President has done a lot to get the economy moving again. In addition to the tax bill, for every new regulation, the President has cut 22 regulations. These factors have increased the quarterly GDP and caused the stock market to hit record highs, with the Dow closing above an astounding 25,000 for the first time ever last week. Even the New York Times was forced to admit:
In the midst of a long-running bull market that is now reaching momentous proportions, most investors may well have forgotten that just two years ago, during the first five trading days of 2016, the market dropped 6 percent. It was the worst five-day start to a year ever and supposedly a harbinger of bad times.
We know where that ended. Spurred by Donald Trump’s election that November, market indexes surged to record levels and went far higher this year. The Standard & Poor’s 500-stock index gained 19 percent in 2017, the Dow Jones industrial average rose 25 percent, and the technology-heavy Nasdaq composite leapt 28 percent.
Trump’s policies have the economy doing well. Unemployment is down to 4.1% and consumer confidence is at an all time high. With the passage of tax reform, the economy has solid momentum going into the new year. The president has done well in enacting conservative fiscal policies, but must continue along this route of deregulation, cutting taxes, and cutting spending.
It has been shown that businesses are responding to the tax and regulatory reforms of President Trump. As long as they continue, I ardently believe that 2018 will be a great year for the economy. All of the cries from the left of the evils of trickle-down economics will always backfire because it’s impossible to tax an economy into prosperity. It’s called supply-side economics, and it works.
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